Suppose the consumer's utility function is given by U(x,y) = x^1/4y^3/4 where The equation for this consumer's demand curve for is

Question

Quizplus · Accepted Answer

To find the equation for the demand curve for good x, we need to take the partial derivative of the utility function with respect to x and set it equal to the price of x, p_x.

U_x = (U1*S1*P1^1/4*y^(-1/4)) / (S1*P0)
Setting this equal to p_x:
p_x = (U1*S1*P1^1/4*y^(-1/4)) / (S1*P0)

Solving for x, we get:
x = (S1*P0*p_x*y^(1/4))/(U1*S1*P1^1/4)

Simplifying:
x = (P0*p_x*y^(1/4))/(U1*P1^1/4)

So the demand curve for x is:
x = A*y^(1/4), where A = (P0*p_x)/(U1*P1^1/4)

Therefore, the answer is B.

Suppose the Consumer's Utility Function Is Given by U(x,y) =